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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  April 16, 2019 3:00pm-4:00pm EDT

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>> i'm just saying, i'm just having fun. charles: great discussion to have. we will know in about an hour. this is a very influential stock. thank you very much for helping us break it down, deirdre and david. dow jones industrial average up 78 points as i hand it off to liz claman. liz: we have a lot of breaking news. i know you will be interested in this. we just got news about qualcomm. we will get that to you in a minute. from paris, french president macron has now in just the last hour put a timeline on the famed notre dame cathedral opening its doors once gagain. macron telling crowds the 850-year-old monument will rise from the rubble within five years. the historic gothic church in tatters after a fire yesterday that incinerated much of the building. its roof, and in a scene that had many around the world gasping, melted the footings of that iconic spire which then collapsed. french officials say there are
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still some issues that are en dangering the structure at this hour but authorities believe the cause of this fire was accidental. firefighters did work furiously, brave firefighters, to remove some of the priceless artifacts today and they have been able to salvage them. at this hour, though, we are told the main structure of the cathedral still intact along with the twin bell towers and iconic rose stained glass windows. thankfully, no lives were lost but now the world is moving forward in an effort to rebuild, donating millions of dollars. we've got one of the world's top experts in the restoration of historic monuments here to lay out the challenges but show you it can be done. netflix earnings on the agenda as the company hopes not to get lost in space. we've got the head cheerleader of the subscription economy. he's here exclusively to tell us who could disrupt the streaming disruptor. meet the chairman and ceo. as we head into this final
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stretch for the markets, wall street rallying to 2019 highs as technology pushes markets into the green. the nasdaq at 8,011, up 35 points, much of that qualcomm. plus trade war tidbits. fear of the fed and charlie breaks it on rising tensions at citigroup. less than an hour to the closing bell. let's start the "countdown." liz: dow component boeing making all kinds of headlines. breaking right now, it is moving sharply higher. you see the spike here, up 1.66%, heavy volume as the faa review board just announced the software update to the grounded 737 max aircraft, the update to the anti- -- to the problem this jet has had, i'm going to use their words, is now operationally suitable.
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sounds, you know, like a little leap to me but they say operationally suitable so separately we are looking at that, and the "financial times" reporting that two leading shareholder advisory firms are calling for a management shakeup at the airplane maker. institutional shareholder services, iss, telling clients that dennis muelenberg should be stripped of at least one of his two titles. he's both chairman and ceo. another shareholder advocacy service is turning its sights on the board, saying the board's audit committee head should be removed for failure to foresee the risks with the 737 max, which is being blamed for two fatal air crashes. there have been multiple complaints on websites about this by pilots so at the moment, boeing stock moving higher but you do have it under attack by these shareholder organizations at the moment. other breaking news. this is the qualcomm stuff that's just hitting the tape. qualcomm is jumping, look at this, 13%. two minutes ago i looked, it was up 8%, then 10%, now 13.25% and
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rising. apple is losing some of its steam here. it's still up a third of a percent but the two biggest players in the snamartphone industry have been facing off in a san diego federal court. there will be a trial that will determine whether qualcomm charges too much for licensing fees. we will have more on the story as soon as we get the details, but as we watch this, the royalty dispute has been settled for the moment, and that is a big move for qualcomm. we understand that apple has agreed and qualcomm has agreed to drop all litigation here. so does that mean no trial? i don't know why we just said there would be a trial. we are going to get that sorted out for you in a minute. we want to get you the news. to the markets. the bears are crying in their honeycomb at this hour because the s&p is now up 16% year to date, at 2,909, very strong. the blue chips are looking particularly chipper as well. microsoft, visa, procter & gamble, mcdonald's, they are all
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hitting record all-time highs. check out the earnings home run by johnson & johnson. the health care conglomerate topping revenue and profit expectations. we also have this, j & j also raising its operational earnings and sales guidance for the year. so very good 2019 for j & j but while one health stock is a winner, another one is a loser. health care insurer united health care, despite fairly strong quarterly earnings, investors cannot overcome their fear that the insurer's business model could be upended by a potential overhaul by congress of the drug rebate system. so we have unh, an ugly day, down about 4.66%, just a few minutes ago it hit its session lows but at the moment, it stands at $219.47. this is not helping others in this field. unh is not the only one needing painkillers in this final hour. look at cigna, anthem, and humana. we have humana and anthem getting creamed, down 7%, and that is an incorrect i believe
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ticker symbol. it should be -- yeah. sorry. the top one for cigna is an incorrect symbol. we will get that for you as soon as that becomes available. to financials. you are witnessing a 180 in bank of america stock. it had been down earlier. let's look at it right now. first quarter revenue did fall short of expectations but now, we have shares already moving into the green, slightly flat at the moment to down one penny. in part because bac showed strong performance in its gigantic consumer banking business. so had been down, now it's flat, up one penny. we are going to check bac later on to see if it can hold on to any gains. we need to take you back to paris, where parisians are holding a prayer vigil and marching at this moment to the remnants of notre dame. this is also a church but of course, notre dame, the grand lady. french officials are now saying even though the exterior of the iconic notre dame cathedral had been saved, because the structure has been so weakened
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by yesterday's monstrous blaze, it is still in danger. now, the massive blaze which authorities believe was accidental did not keep those brave firefighters from toiling furiously, risking their own lives to get inside there and save the paintings and many of the artifacts in there, including some of the sculptures in the windows. at this hour we are being told that unbelievably, speaking of the windows, the iconic rose stained glass windows were not shattered even as the spire came crashing down. they have survived along with the twin rectangular towers. notre dame, by the way, is one of france's most visited monuments, drawing some 13 million visitors per year. to give our viewers some perspective, the number of tourists visiting that cathedral, roughly double those who then cross the river and go to the eiffel tower. earlier today, actually, no -- yes, across the river. eiffel tower is on the left bank
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overlooking the right bank. amazing display of generosity at this hour as billionaires and multi-millionaires of large corporations contribute more than $700 million. 24 hours, unbelievable, to rebuild the national monument. business to the rescue. france's luxury brand tycoons, leading the way. the pinot family will donate approximately $113 million. francois pinot is ceo of the parent company of everything from gucci. and bernard arnault, behind companies such as sephora and others. french president emanuel macron called for help to rebuild the iconic structure. as we said, 850 years old. to susan li and i cannot believe it, i'm so happy those gorgeous stained glass windows have survived. isn't that amazing? >> it is amazing.
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that's right. 850 years of history. there is some relief today and we heard from french president macron just a few minutes ago in a five-minute televised address, basically saying notre dame can be rebuilt, our lady can be rebuilt in five years. that's half a decade thanks to the generous donations as you mentioned from the owners of lbmh and the owner of the loreal brand, the three richest families in france pledging half a billion dollars to rebuild france's notre dame cathedral. we also heard from macron, who basically praised the emergency services and the staff, as you mentioned, the firefighters and the police officers who were so brave in getting in there to fight this blaze that really captivated the world just yesterday. he's calling for national unity. yesterday was a national emergency as we watched notre dame burn. today is a day of national unity
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and again, it is thanks to those that stepped in to try to save our lady, according to french president macron. but five years, maybe we will see notre dame and its full glory once again, since as you mentioned, it is the most visited site in paris. 30,000 tourists each and every day. liz? liz: thank you very much, susan li. now, why should everybody be confident that notre dame will rise and thrive again? because one of the world's foremost authorities on the restoration of historical landmarks says it can be done. she knows how, she's coming up next to tell you how to do it. back in the u.s., let's get to the markets. the bulls have 8,000 reasons to snort with joy at this hour. the nasdaq at this moment, topping 8,000 for the first time since october 3rd. that index is home to google, netflix, apple, all these other names, qualcomm. it will be able to close above this level, if it does, because we are optimists here, then we start to turn and ask the question what will be the
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catalyst to push the tech-heavy average to 9,000? to our floor show traders and matt, i don't want to ignore the qualcomm news. can we get the qualcomm stock chart up? because this is no doubt going to definitely propel this market tomorrow when there will not be this horrific litigation between it and apple. but a big spike for that stock helping the nasdaq advance. >> yeah, certainly that's going to be a catalyst. we saw the rally today, we were close to flat, we rallied a little bit higher. i think the catalyst tomorrow in the nasdaq side will be netflix. i would anticipate the stock moving toward a 5% like it always does after earnings. but we need to probably pump the brakes a little bit. we have low-hanging fruit to get to 8,000, to getting to 9,000 will require a lot of different things. we are starting to meet some of them, whether it's the u.s./china talks, whether it's brexit, whether it's these earnings that have been walked down enough for these companies to beat. so let's take it for what it is right now and enjoy the 8,000 mark for the time being. liz: okay. again, i'm going to hammer ira,
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qualcomm for a minute because, what we started the show 3:00 p.m. eastern, 11 minutes later it has jumped another 2%. folks, it is jumping 16% at this very moment. this because apple and qualcomm have agreed to drop all litigation. i don't know if we can get an intraday but you will see that intraday for qualcomm spiking on this news. qualcomm, for those of you who aren't familiar with it although it's a very, very famous stock here, they are the chips that go inside smartphones. you can see that massive spike at this moment, scott, and ira. ira, to you first. a comment on that, then what brings me sort of positivity to the nasdaq between now and 9,000. >> first, between now and let's talk good friday. why would you want to sell? that's the first thing that comes up. second thing, we've got the potential for trade deals. third thing, qualcomm. another harbinger of the market. it's one after another that fall
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away. eventually mexico will have their deal according to nancy pelosi. as i look at it, where are the head winds that keep disappearing? markets become the market and that's the place to invest. interest rates, 2.6, nice that they are off the 2.44, that's important, because the market's not scared, they don't have to go much higher here, and energy prices keep moving higher. very slowly, but they are being bought on each of the breaks. this market is all systems go. liz: i like to hear that. scott, we are looking at a 15% gain for the s&p 500 year to date, where people flooded out of the markets in december. they were very concerned, i mean, christmas eve, you remember that? the dow was tanking and i wonder, that is the time where there is the most fear, to quote warren buffett, should have gotten in, right? >> you know what, it's not just christmas. go back to february last year as well. the first time that the market freaked out with interest rates going to 3% and look what happened there. so you know, you look back the
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last two, three, four years or so, it seems that every big event that we've had like that, some big overreaction in the marketplace and it's obviously easy to look in the rear view mirror and be a monday morning quarterback but this market is resilient. overall, this market is resilient. you really have to take these big moves here for face value. yes, we may get these one-offs, there may be something that triggers the emotion and triggers people being scared in the marketplace but when you take that step back and really look at where are the fundamentals, where is the economy, where is the nasdaq, why are we going to get to 9,000 or maybe even 10,000, that's what you really have to digest. there are still a lot of people on the sidelines that have missed this train. if we really start accelerating here in earnings season, that could be the catalyst for all of these short sellers coming back into the marketplace to not only take the nasdaq up towards 85 and maybe 9,000, but the s&p and dow to all-time highs as well. liz: bold prediction from scott. great to see all three of you.
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thanks for weighing in. 45 minutes before the closing bell rings, it is the nasdaq we are watching. we are getting you details on the apple/qualcomm litigation deal. no more litigation. the headlines are still coming out, but it's been a long time since i have seen a stock spike 16% over about nine minutes. we are going to take a deep dive into what's going on here when "countdown" comes right back. we're carvana, the company who invented car vending machines and buying a car 100% online.
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liz: back to this breaking news on qualcomm and apple. it's got to be a land speed record that's been broken for court trials. just one day after the patent dispute trial began between the two giants, everything's been dropped. they have settled. check it right now. apple is up half a percent. qualcomm, the chip giant, up 15.25%. now, we can look at the intradays here, and i'm going to look down for a minute to get some of the details here. the pact ends all ongoing litigation between these two. now, apple's contract manufacturers, that would include qualcomm, they reached this global patent license agreement and the chipset issue also involving what goes into phones. you can see that major spike
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here. now, apple accused qualcomm of basically hamstringing and forcing customers to pay double to gain access to its chips, so as the arguments got under way, you could pretty much tell it was going to be this stretched-out, long-brewing legal battle between the two over how royalties are collected when it comes to i guess you could say innovations in smartphone technology. in the opening remarks, which just happened yesterday, a nine-person jury was picked about 15 miles from qualcomm headquarters which is in san diego. apple lawyers tried very hard to portray the chip company as a huge monopoly and that it had kind of used its patent portfolio as a weapon, you know, charging unbelievable licensing fees, 5% of the sale price of iphones sold, et cetera, but apparently you had a pushback from qualcomm and both sides decided you know what, let's drop our weapons and call each other friends. and it is qualcomm at this hour
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that appears to be the major shareholder beneficiary. 16.75% to the upside. kristina, can we make it 17%? you and i have been watching this for so many months, it's a stunning development. reporter: it is a stunning development which is why you are seeing the reaction so quickly on the screen right now. can it hit 17%, possibly, then they start to parse through the details. what we know is this six-year licensing agreement can be extended for two more years. you went through most of the details so we are getting a lot of this through the headlines right now but like you mentioned, this has been a patent war that's been going on. apple does have to pay qualcomm, too, so i don't know if you went through it in terms of the details of the payment but we are not getting those numbers just yet at the moment. but reaction on the market is really obviously very positive, because qualcomm or apple portrayed qualcomm as a monopoly in the market, charging those excessive fees. you can see just through the
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litigation that the agreement has come to an end and both parties have decided to drop all allegations. aside from that, apple paid $16.1 billion, if we are talking about numbers, to qualcomm just from 2010 to 2016. a lot of that, and this argument revolves around what apple thinks is the excessive high fees. as you mentioned, you have finally agreement and can we hit that 17% stock increase, we'll see in the next few minutes. liz: it was fascinating over the weekend. i was reading the "wall street journal" online and they had this huge article about the face-off that was to happen between the ceo of qualcomm and of course, tim cook of apple. they were going to be dragged up there to testify and maybe both of these guys said you know what, let's deal with this. intel and amd had these arguments. it goes way back to all kinds of licensing accusations in the past when it comes to these chips because everybody has a huge demand for chips. qualcomm is that company that provides them.
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reporter: i think it's a great point. what was the turning point, what was the trigger right now for them to both reach an agreement, will we see the reaction once people start to go through the news that there was something for them to come to this conclusion and then you could see a sell-november toff in the. what was it, because you would expect this battle to continue a little longer. liz: yeah. the blue line, the spike there since the first trade today, that's qualcomm. apple of course not getting a huge amount of news there, but i just want to check because both you and i are working through this as it kind of happens. again, they settled the royalty dispu dispute. i'm interested to know why it looks like such a much bigger positive that the courtroom drama won't be happening for qualcomm, continuing to look at the headlines here. yeah. it's just that the litigation is done. i suppose when the dust settles, we will find out more about exactly why they both dropped those swords and all of that
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together. you know, intrigue in silicon valley and san diego. thank you so much, kristina. 37 minutes before the closing bell rings. gamers, listen up. you might like this one. electronic arts among the nasdaq laggards in this final hour after the company's origins platform exposed gamers to hackers. this according to tech crunch. underdog security found a glitch that would trick gamers into running malicious code on their computers. but even with the drop of 4.33%, electronic arts still up more than 20% year to date. it will survive. up next, fender guitars searching for growth and finding it in the subscription economy. the company providing the backbone for a new generation of shredders run by a guy who is the hidden hero of the subscription economy, chairman and ceo of a company and in a fox business exclusive, is coming to tell us about netflix,
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liz: clock is ticking down as wall street braces for netflix earnings. they are coming out after the bell. while analysts will be, we can guarantee this, hyper-focused on subscriber growth and price hikes, investors also have one eye on the competition as deep-pocketed rivals apple and disney step up their streaming game by debuting their own versions of competitively priced streaming services. our next guest is a guy who has made it possible for you guys to binge watch all of your favorite tv shows. his company zuora creates cloud-based software that makes all your streaming subscription dreams come true. to the man who coined the phrase subscription economy, tien tzuo, here in a fox business exclusive. 30 minutes before netflix was supposed to at least get into the realm of releasing their
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earnings, what apple and disney did when they unveiled their streaming services in just the past couple days, to shift the focus from service to subscription pricing, really brings you into the picture, doesn't it? tell us how and what zuora does. >> we are a software platform behind the scenes. liz: he's so behind the scenes we lost his feed and he went dark. we are going to try to reestablish that in just a moment. as we look at this new subscription economy, i want to just explain to you guys that it's sort of a razor blade business model. you know you are going to sell the razor once. where are you going to get that revenue, right? you have to lock the consumer into a long-term relationship by making them buy the razor blades. okay? so that's where the subscription comes in for the netflix of the world and the hulus. we can put up the pricing that apple and of course, disney have thrown up as throwing down a gauntlet toward netflix, and i believe that disney came in at
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$6.99, but netflix is coming in higher, for bigger opportunities for the top tier. so while the base of $8.99, it can go up to about $13. all right. we are trying to reestablish that connection. we are looking at the dow jones industrials which earlier had been up more than 100 points. at the moment, we do have the dow up 72. when we come back, we are going to hear more, we hope, if we can establish the contact once again and check out the markets. all three major indices hitting record highs. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪
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liz: breaking news. now qualcomm is up 20% at this very moment. it appears that part of the reason in this royalty dispute that is no longer a dispute, because they have dropped all
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litigation between apple and qualcomm, is that earnings will be meaningfully impacted in a positive way, more so i believe for qualcomm, which is saying it could add another $2 to its earnings because it will not have to fight this. now, let us quickly go to tien tzuo, ceo of zuora. you are there in silicon valley. this has got to be the talk of the town, the breaking news on qualcomm. >> i think it's great news for the industry. i don't think legal disputes help anybody. we can all go back to focus on innovating. liz: which is what you do and what you are doing for the subscription economy, a term that you coined. i was just explaining to our viewers about the razor versus the razor blades. you can sell somebody a razor but then you need that incoming revenue to keep coming. that's where you come in. you are behind the scenes and you were just explaining to us exactly what you do. >> well, it seems so easy for you as an end user, you pick up your phone, fire up your browser, your tv and start using
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these services. lot of things have to happen behind the scenes. you have to check your credit card, remember to send out the monthly bill, figure out how much revenue you should recognize or allow your customers to upgrade to a family plan or better bundle. we take care of all that so companies can focus on what they do best which is providing a great service and great experience for their customers. liz: well, the biggest threat, though, to a model that involves subscriptions is competitive pricing. isn't that what we are now seeing with disney entering the streaming wars? hulu is already there, apple's jumping in, and you know, it's going to be sort of a game of inches where there's slicing and dicing pennies off of these things. everybody is at blank 99 because psychologically, $5.99 is better than seeing a 6. >> i think people are missing the big picture which is ott really today only represents 5% so the $500 billion spent on tv. so this is really, really early days. there is probably room for many vendors to thrive. if you think about the telephone market, the cell phone market,
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at & t, verizon, t-mobile, sprint, and it's true they use pricing and packaging to compete with each other but they also have differentiated products in the marketplace. liz: what did you do for fender guitars? we are talking about streaming, et cetera, but fender is actually a business of the famed stratocaster. you had jimmy hendrix using fender. it's expensive. how do you get people on the subscription issue and get more customers? >> the secret of these business models for product is not just going beyond think i sell products. think about your customers. the great story is fender realized their customers wanted to be obviously musicians. it was hard, it was hard. 90% of the customers actually stopped playing the guitar after 90 days. so they said how do we help our customers over the hump. by the way, if they are playing them by 12 they play for life and will buy more guitars, more amps, more picks, so they launched fender play to teach their customer for $20 a month
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how to play the guitar and are seeing success in customers that actually sign up for fender playing, stick with it. stick with the guitar. you could become really good. liz: i think it's too late for me. >> never too late. liz: i love the company. we love highlighting companies about which people don't know that much. thank you so much for talking to us. thank you. >> absolutely. liz: keep it here. at the top of the hour, connell and melissa will have complete coverage of netflix earnings after the bell. got to watch for all of the metrics netflix comes out with. let us go to breaking news right now, and a live massive prayer vigil in paris that's happening right near the site of notre dame. can the historic cathedral rise from the ashes and be restored to its glory? president macron says it can be. but let's show you what can be done. take a look at a smaller church. this one in new jersey, hit by an equally disastrous fire. st. bernard's episcopal was devastated by flames in 2004.
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the church was designed in 1897 by an esteemed turn of the century architectural firm. historic building architects. it was the firm charged with the challenge to return the church to its original state. this as it burned. in just a minute, we will show you what it looks like today, but now we are going to show you what the woman who was charged to do it and succeeded in doing it looks like now. anabell radcliffe is the founder of the firm. your experiences, asupppply the notre dame. how will they begin to restore this iconic cathedral? >> thank you for having me. this is going to be a challenge for the preservation field in france to restore this building. it is complicated. there will be many, many team members, architects, engineers, preservationists, conservators,
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technology people to wood scientists to non-destructive evaluation technology, engineers who can do the assessment work. the first part will be once it's cleared of all the debris, to document the condition as it is now, and that's some of the condition we can't even see which is sort of behind the walls, and that part of the technology we use today. liz: not to mention smoke damage. the stained glass windows apparently preserved. the picture of the cross, unbelievably, the cross inside is standing, still above the rubble which is amazing in and of itself. i don't know if you heard, you have two top multi, multi millionaire, billionaire men, pinault and arnault. they're kind of rivals in the world. but within 24 hours, the two of them in an effort to kind of look what i'm doing, look what i'm doing.
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whatever it is, $300 million toward the restoration. will that be enough? >> probably not. liz: really. >> i think it's going to take an awful lot. we of course don't know how much damage has been done yet. until the assessment is done, we really can't, you know, work out how much masonry work is damaged, for example, by the heat, how much wood can be salvaged and possibly even reused. so there's a lot of investigation and investment in that first followed by the reconstruction and restoration of the cathedral. liz: we saw the spire topple. that of course was, i believe, almost 800 years old. i wonder, can you salvage something like that or do you have to build a whole new one? >> well, i think from the fire damage that we saw, it was
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really destroyed. but i'm sure a lot of the wood still remains. there are ways of determining whether wood can be salvaged. there are gauges we can use to determine whether there is solid wood behind the char. there are ways to sort of look at the materials and see what can be salvaged. the question is authenticity. how much can we preserve and keep the authenticity of this great building. liz: the gargoyles. the flying buttresses. before we show the success of what you were able to do at sein st. bernard's church, which was destroyed by fire, well, this is it, obviously. that has been renewed. you have done a beautiful, beautiful job for a church that dates back to the 1800s. congratulations. thank you for your expertise. >> thank you. liz: she says notre dame will
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rise once again. thank you so much. we are 17 minutes before the closing bell rings. coming up, charlie gasparino has new exclusive details on rising tensions surrounding one of the biggest banks, not just in america, but in the world. what the future might hold for citigroup's ceo. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. liberty mutual customizes your car insurance, hmm. exactly. so you only pay for what you need. nice. but, uh...
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liz: oh, breaking news. waymo is expanding its self-driving taxi company, now offering its ride hailing app on google play for its riders in the phoenix area. so that is just two weeks ago where "countdown" went out and got an exclusive ride-along with the ceo, john krafcik, fully
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autonomous. that person there is a test driver who sits there just in case i press the wrong button. >> just in case. liz: just in case. soon it will be fully autonomous. >> people won't be able to crack any more women driving jokes if waymo takes on. liz: yeah. yeah. my dad would pass any car and said dumb woman and it was a man. john krafcik said and hinted there were more moves coming for waymo in the future. listen to what he said. >> we are serving a relatively small part of greater phoenix. we are going to expand in phoenix, then we are going to expand to other cities. liz: where? where? he wouldn't tell me. >> i heard there's a lot of women drivers in phoenix. that's why they're expanding there. liz: would you stop it? alphabet, the parent of google, and of course, waymo has now been spun off from google projects. it's moving higher by a quarter of a percent. this is the kind of news that makes uber and lyft a little nervous. to citigroup. the shares are right now in the green intraday but if you look at a year to date chart, the big
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bank stock is actually down 20%, and it's this slide as the s&p, by the way, is up 15% year to date, this slide has critics on high alert, possibly about the management? >> yeah, and the guy that runs it, mike corbat. that $69 and whatever it was -- liz: that was awhile ago. >> it's only really a $6.90 stock, if you look at -- liz: the reverse split. >> it was a rivers spleverse sp. this company has grown from something like $5 to $6 over the last ten years. the guy running it is coming under some pressure. here's what we know. i just want to make clear, i'm not saying mike corbat is about to get fired. i'm not saying that. we are hearing dissension within the senior management ranks. we are hearing some board members are worried about the following. number one is the stock price. they are worried that the stock price has lagged. mike corbat has done a decent job spinning out the toxic assets that almost took
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citigroup down during the financial crisis. he created a bad bank, he's gotten rid of them. but he hasn't really grown the stock that much. if you look at it, a chart, and i look at it from around august 2009, i compare jpmorgan to citigroup, okay, jpmorgan has been up like 111% since 2009. liz: we have that? >> we should have it. we talked about the chart before. but citigroup has been up about 30%. liz: jpmorgan is the yellow line. >> there you go. that is not great performance. we are hearing it within the senior management ranks that they are now questioning whether mike corbat is the guy to grow the business. liz: is there a successor? >> that's where we get to the other issue here. we should point out a guy named jamie ferice, he was like a nominal number two, was pushed out last week or left last week. we don't know, really, the story of that, from what i understand, concerns from board members about management in there. michael neal was a long-time lead board member. he's out.
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corbat has lost a key ally on the board. you add all this together, and people are now looking at corbat, what's next for him, does he have a successor, is he going to be there in the future, is he the right guy for the job. we should point out the ceo did give us a statement for the story. they told us the board has made its strong support for mike crystal clear. liz: under michael corbat, up 88%, charlie. >> we should point out under corbat it's up 88%. we should also point out . liz: isn't that what we are talking about? his leadership? >> after a gazillion dollars in bailout. if you cannot improve the company marginally with a gazillion dollars of bailouts and federal assistance and everything else, it's really an issue. i'm telling you, this is starting to percolate inside the company and from what i understand, the board is growing more anxious about the stock price. they are hearing from investors. so this is something to keep an eye on. citigroup has not been in the news a lot lately. it's not a troubled bank.
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it was the bank, my belief, that caused the financial crisis, just so you know. it had so much toxic assets, it was so big, it was built by sandy wyle and his number two, they had no idea what was going on. bob ruben was on the board, great financier, treasury secretary, but he had no idea. jamie dimon, right, the guys running it couldn't do it. they blew up, they caused probably the financial crisis because you couldn't have a bank that big blow up, and not bail them out. they needed the bailout. corbat took it over in a relatively calm era, but from what i understand, there is consternation about him not growing the stock and improving the bottom line. liz: up 30% year to date. i love these guys. consternation. >> it's gone from five to six. $5 a share to $6 a share. liz: good to see you.
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>> try doing that here. see what happens. liz: canned immediately. charlie gasparino. "countdown" coming right back. dow is up 45. s&p slightly less. -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ ) the day we'll finally get something done.
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liz: breaking news out of colorado. we have the colorado sheriff's office saying that it has placed columbine high school and at least 12 other schools in the region under security alert citing quote, credible threat. now the timing is really depressing and upsetting here. april 20th, will be the 20th anniversary of that mass shooting at columbine high school where two teenage boys students killed 12 of their students also at that school, murdering them, shooting them to death. we'll be keeping you posted on this story as the details come
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in. back to the s&p five hundred flirting with a new record high, but seems to have lost its mojo at the moment. you look at the fact it is not quite there yet. that is less interesting than the fact it has come roaring back since a low in december. our next guest says the federal reserve is still worried. so if the fed is worried, why shouldn't we be? his s&p 500 model shows something that he wants to explain to you. barry banister is here with, barry world view. tell us what you are seeing. >> yeah, liz. as far as the model goes it just shows the s&p at the very top of the range we would have expected. we have had a "v"-shaped market this year, but we're looking at more l-shaped earnings. we're below the street with earnings, mostly technology. one of the thinks that bothers
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me the market is 17 times forward earnings on consensus, a little above that on our sits. the long-term average is 14.4 times earnings on price-to-earnings ratio. we're talking about somewhat overvalued market where earnings will slow mid-year because a lot of the things that have happened, both on chinese stimulus and fed policy, they work with a lag, a lag that will impact mid-year growth. i'm not terribly attracted to stocks here. in fact we might be setting up for classic sell in may, to away at least through the summer. liz: our traders said exact opposite at the top of the show. two different breeds of cat, you have an investor and trader. i have to ask what is the fed afraid of? they weren't afraid last year when this raise ied rates four times. >> they stopped raising interest rate with real interest rate
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minus inflation. real fed fund has been 1.7% the last 50 years on average. [closing bell rings] for the fed to give up at a low rate shows the fed is if trouble and they're very worried. liz: barry, thank you for joining us. nasdaq, 8,000 even. that will do it for "the claman countdown." melissa: we're moments away from the numbers that will impact your money tomorrow, netflix, ibm, united continental all expected to report earnings the next few minutes, all major averages ending the day in the green. the dow endings up 68 points. a new closing high for 2019. i'm melissa francis. connell: i'm connell mcshane. the nasdaq closing at new ice as well. s&p 500, fighting for some gains. up a point or so, point 1/2 into the close. we have it all for you. this should be a big hour. this is "after the bell." more on the big market movers. here is what is new at


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